Assessment of State Implementation of Business Reforms Released

Ques: 14 September, 2015 which of the state ranked highest in the “Obtaining Infrastructure Related Utilities” list?

a. Gujrat b. Andhra Pradesh c. Jharkhand d. Chhattisgarh

Ans: a

Related facts:

September 4, 2015 a report titled “Assessment of State Implementation of Business Reforms” was released.

This report captures the findings of an assessment of reform implementation by states.

The report was conducted jointly by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, the World Bank Group and KPMG as the knowledge partner, the Confederation of Indian Industry(CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI).

This assessment is the first of its kind.

This has been conducted to take stock of reforms implemented by states in the period January 1 to June 30, 2015 based on the 98-point action plan for business reforms agreed between DIPP and State and Union Territory governments on December 29, 2014.

The report assesses implementation status of reform measures across the following eight areas

Setting up a business

Allotment of land and obtaining construction permit

Complying with environment procedures

Complying with labour regulations

Obtaining infrastructure related utilities

Registering and complying with tax procedures

Carrying out inspections

Enforcing contracts

It is noted that Gujrat is in the first place with 71.14% of the implementation of measures to improve the situation.

Rajasthan, Orissa, Maharashtra, Karnataka are in the sixth, seventh, eighth, and ninth place respectively.

Across the country, states have made good progress in general tax reforms like mandating e-registration for VAT and CST; allowing online payment and filing of returns for various state taxes; providing e-filing support through service centres and helplines; and risk-based tax compliance inspections.

29 states allow VAT to be paid online, and 28 states allow CST to be paid online.

While most states allow e-filing of VAT and CST, 21 states have established helplines for users.

25 states have defined timelines for VAT registration and 21 have defined timelines for CST registration.

Punjab(48%) and Andhra Pradesh (78.57%) find first and second place respectively in the business establishment.

In the area of Land allocation and obtaining Construction permits, Madhya Pradesh (73%) and Gujarat (72.41%) are ranked first and second respectively.

Complying with Environmental Procedures, Gujarat (100%) and Andhra Pradesh (19%) became the first and second State respectively.

Complying with the labor Laws, Jharkhand (100%) and Gujarat (47%) find the first and second place respectively.

Obtaining Infrastructure utilities, Maharashtra (89%) and Gujarat (75%) were in the first and second place respectively.

Registration and Tax Compliance procedures, Karnataka (73%) and Andhra Pradesh (90.63%) were at the first and second place respectively.

Carrying out Inspection field, Jharkhand (72%) and Gujarat (74%) find the first and second place respectively.

Enforcing the Contract, Maharashtra (56%) and Madhya Pradesh (44.44) were ranked first and second respectively.